Global Figures Reveal the Importance of TV Advertising to Online Businesses
Figures from around the world show the extent to which online businesses are now investing in TV advertising, in some countries becoming the biggest investors in TV.
The figures compiled by The Global TV Group – the informal grouping of TV broadcasters’ and sales houses’ trade bodies in Europe, the USA, Canada, Australia and Latin America – show that, from Brazil to Germany, brands such as Amazon, Zalando, Netflix, Expedia and Airbnb are building their image, reputation and sales through the reach and influence of TV.
The investment trend demonstrates the strong relationship between TV and online, with viewers armed with internet-connected devices able to respond to TV advertising immediately.
Some of the world’s biggest tech giants spent significantly more on TV advertising in Australia in 2017. According to Nielsen Adex, Google spent 6 times as much on TV advertising, reaching A$11.3 million, and Apple increased its ad spend by 17.4% to A$20.2m. Amazon backed its Australian launch with a TV ad investment of A$3.2 million, and Uber increased its TV spend with a first investment of A$3.4 million.1
In 2016, TV represented a 62% share of the online business sector’s media investments. The Rocket Internet group, the second biggest spender, which owns companies like HelloFresh and Home24, spent a total of €6,072,463 in 2017 on TV advertising.2
Online businesses’ TV adspend grew by 17% between 2015 and 2017. When including the e-commerce players owning physical stores, the increase is almost 20%.3
Online businesses represent one of the fastest growing sectors in TV advertising. Online businesses have doubled their spend on TV over the past 5 years, with spend in 2017 topping $105 million.4
The TV adspend of online businesses owning physical stores was US$10,610,000 in 2017, a 20% increase compared to 2015.5
From 2015 to 2017, the online business sector doubled its gross TV adspend to reach the equivalent of €47,4 million.6
Over a 3-year period (2015 to 2017), Airbnb’s TV ad spend increased by 44%. Expedia and Amazon show even more impressive figures with an increase of 65% each.7
Online businesses invested a total of €95,653,000 in TV in 2017, representing a 10.7% increase compared to 2015.8
E-commerce advertisers increased their TV invesment b 26y% between 2015 and 2017 to become the fourth biggest category of TV-advertisers. 200 e-commerce advertisers invested € 300 million gross in TV in 2017. The highest TV investor was the German booking site Trivago with a gross investment of € 25 million.9
Amazon’s TV adspend went from €106,990 in 2015 to €11,006,360 in 2017, more than 100 times the investment in 2015. Google’s investment in TV went from €40,250 in 2015 to €603,620 in 2017, 15 times more.10
FurnitureBox’s TV adspend went from €1,263,633 in 2015 to €6,908,984 in 2017 representing approximately 5 times the 2015 investment.11
The gross TV adspend of the top 10 e-commerce advertisers almost doubled between 2015 and 2017, resulting in a gross total of approximately €84,878,635.12
Online businesses – including brands such as Amazon, Trivago, Google & Purple Bricks – invested a total of £682 million in TV advertising in 2017, up from £590 million in 2015. Despite cuts in other categories due to ongoing economic uncertainty, online businesses, which in 2016 became the biggest spenders on TV in the UK, remained steadfast in their TV investment.13
In 2017, digital-native companies – including brands like Amazon, Expedia, Wayfair & eBay – spent over $5.9 billion US dollars on TV, representing a 10% increase over 2016. Within this spend is a group of 50 “direct-disruptor” newcomer brands – including Gwynnie Bee, Peloton & Leesa – who only recently began investing in TV but now collectively spend over $1.3 billion U.S. dollars in TV annually.14
The positive trend is set to continue in 2018 as more e-commerce brands around the globe put their trust in TV advertising to strengthen their image, drive traffic and generate return. Recent examples are the TV campaigns launched by Snapchat (“A new kind of camera”), Amazon (“Bedtime Blitz” or “Be Together More”), Trivago (“In the Mountains”) and Airbnb (“Expletive-filled Interest”).
The Global TV Group is an informal grouping of broadcasters’ and sales houses’ trade bodies in Europe, the USA, Canada, Australia and Latin America, whose joint objective is to promote television. www.theglobaltvgroup.com
1Source: Nielsen Adex. Total market: Metropolitan TV 2017 A$3.577 Billion
2Source: MDB gross investments
3Source: IBOPE Monitor Evolution
4Source: Ad Dynamics, Internet related sites & services category + Expedia, inc. (Hotels.com) + Priceline Group + Wayfair LLC + Sunwing Travel Group + E-Harmony.com + Elite Singles + Indeed + Justfabulous LLC + Web.com
5Source: IBOPE Monitor Evolution
6Source: Nielsen Admosphere. Conversion from CZK 1,209,181,843. Source XE as of May 14th
7Source: Nielsen 2018
9Source: Nielsen, 2018
10Source: Arce Media
11Source: TNS-Sifo Reklammätningar. Conversion from SEK12,906,000 and SEK70,563,000. Source XE as of May 22nd
12Source: Media Focus WizzAd.Conversion from CHF 101,391,000. Source: XE as of May 14th
13Source: Nielsen, 2017
14Source: Nielsen, 2017